SECTION 14. HOW ARE

CONFERENCES SCHEDULED?

If requested, offered to the .01 If, after the technical advice request is analyzed, it appears that technical advice taxpayer when adverse adverse to the taxpayer will be given, and if a conference has been requested, the taxpayer technical advice proposed will be informed, by telephone if possible, of the time and place of the conference.

Normally held within 21 days .02 The conference must be held within 21 calendar days after the taxpayer is contacted. of contact with the taxpayer If conferences are being arranged for more than one request for technical advice for the same taxpayer, they will be scheduled to cause the least inconvenience to the taxpayer. If considered appropriate, the national office will notify the EP/EO specialist or appeals officer of the scheduled conference and will offer the EP/EO specialist or appeals officer the opportunity to attend the conference. The Assistant Commissioner (EP/EO), the National Director of Appeals, the key district director, or the chief, appeals office may designate other Service representatives to attend the conference in lieu of, or in addition to, the EP/EO specialist or the appeals officer.

21-day period may be .03 An extension of the 21-day period will be granted only if the taxpayer justifies it in extended if justified and writing, and the branch chief (or his or her delegate) of the office to which the case is approved assigned approves it. No extension will be granted without the approval of the branch chief (or his or her delegate). Except in rare and unusual circumstances, the national office will not agree to an extension of more than 10 working days beyond the end of the 21day period.

The request for an extension must be submitted before the end of the 21-day period, and should be submitted sufficiently before the end of this period to allow the national office to consider, and either approve or deny, the request before the end of the 21-day period. If unusual circumstances near the end of the period make a timely written request impractical, the national office should be told orally before the end of the period about the problem and about the forthcoming written request for an extension. The written request for an extension must be submitted to the national office promptly after the oral request. The taxpayer will be told promptly (and later in writing) of the approval or denial of the requested extension.

Denial of extension .04 There is no right to appeal the denial of a request for an extension. If the national cannot be appealed office is not advised of problems with meeting the 21-day period, or if the written request is not sent promptly after the national office is notified of problems with meeting the 21day period, the case will be processed on the basis of the existing record.

Entitled to one .05 A taxpayer is entitled by right to only one conference in the national office unless one conference of right of the circumstances discussed in section 14.09 of this revenue procedure exists. This conference is normally held at the branch level in the appropriate division (Employee Plans Division or Exempt Organizations Division). It is attended by a person who has authority to sign the transmittal memorandum discussed in section 16.13 on behalf of the branch chief.

When more than one branch has taken an adverse position on an issue in the request, or when the position ultimately adopted by one branch will affect another branch’s determination, a representative from each branch with authority to sign for the branch chief will attend the conference. If more than one subject is discussed at the conference, the discussion constitutes the conference of right for each subject discussed.

To have a thorough and informed discussion of the issues, the conference usually is held after the branch has had an opportunity to study the case. However, the taxpayer may request that the conference of right be held earlier in the consideration of the case than the Service would ordinarily designate.

January 4, 1999 174 1999–1 I.R.B.

The taxpayer has no right to appeal the action of a branch to a Division Director or to any other Service official. But see section 14.09 for situations in which the Service may offer additional conferences.

Conference may not be taped .06 Because conference procedures are informal, no tape, stenographic, or other verbatim recording of a conference may be made by any party.

Conference may be delayed .07 In the event of a tentative adverse determination, the taxpayer may request in writing to address a request for a delay of the conference so that the taxpayer can prepare and submit a brief requesting relief under § 7805(b) relief under § 7805(b) (discussed in section 19 of this revenue procedure). The branch chief (or his or her delegate) of the office to which the case is assigned will determine whether to grant or deny the request for delaying the conference. If such request is granted, the Service will schedule a conference on the tentatively adverse position and the § 7805(b) relief request within 10 days of receiving the taxpayer’s § 7805(b) request. See section 19.06 of this revenue procedure for the conference procedures if the § 7805(b) request is made after the conference on the substantive issues has been held.

Service makes tentative .08 The senior Service representative at the conference ensures that the taxpayer has full recommendations opportunity to present views on all the issues in question. The Service representatives explain the tentative decision on the substantive issues and the reasons for it.

If the taxpayer requests relief under § 7805(b) (regarding limitation of retroactive effect), the Service representatives will discuss the tentative recommendation concerning the request for relief and the reason for the tentative recommendation.

No commitment will be made as to the conclusion that the Service will finally adopt regarding the outcome of the § 7805(b) issue or on any other issue discussed.

Additional conferences .09 The Service will offer the taxpayer an additional conference if, after the conference may be offered of right, an adverse holding is proposed on a new issue or on the same issue but on grounds different from those discussed at the first conference.

When a proposed holding is reversed at a higher level with a result less favorable to the taxpayer, the taxpayer has no right to another conference if the grounds or arguments on which the reversal is based were discussed at the conference of right.

The limitation on the number of conferences to which a taxpayer is entitled does not prevent the national office from inviting a taxpayer to attend additional conferences, including conferences with an official higher than the branch level, if national office personnel think they are necessary. Such conferences are not offered as a matter of course simply because the branch has reached an adverse decision. In general, conferences with higher level officials are offered only if the Service determines that the case presents significant issues of tax policy or tax administration and that the consideration of these issues would be enhanced by additional conferences with the taxpayer.

In accordance with section 14.02 of this revenue procedure, the EP/EO specialist or appeals officer may be offered the opportunity to participate in any additional taxpayer’s conference, including a conference with an official higher than the branch level. Section 14.02 of this revenue procedure also provides that other Service representatives are allowed to participate in the conference.

Additional information .10 Within 21 calendar days after the conference, the taxpayer must furnish to the submitted after the conference national office any additional data, lines of reasoning, precedents, etc., that the taxpayer proposed and discussed at the conference but did not previously or adequately present in writing. This additional information must be submitted by letter with a penalties of perjury statement in the form described in section 16.10 of this revenue procedure.

1999–1 I.R.B. 175 January 4, 1999

The taxpayer must also send a copy of the additional information to the key district director or the chief, appeals office, for comment. Any comments must be furnished promptly to the appropriate branch in the national office. If the key district director or the chief, appeals office, does not have any comments, he or she must notify the branch representative promptly.

If the additional information would have a significant impact on the facts in the request for technical advice, the national office will ask the key district director or the chief, appeals office, for comments on the facts contained in the additional information submitted. The key district director or the chief, appeals office, will give the additional information prompt attention.

If the additional information is not received from the taxpayer within 21 calendar days, the technical advice memorandum will be issued on the basis of the existing record.

An extension of the 21-day period may be granted only if the taxpayer justifies it in writing, and the branch chief (or his or her delegate) of the office to which the case is assigned approves the extension. Such extension will not be routinely granted. The procedures for requesting an extension of the 21-day period and notifying the taxpayer of the Services’s decision are the same as those in sections 14.03 and 14.04 of this revenue procedure.

Under limited circumstances, .11 Infrequently, taxpayers request that their conference of right be held by telephone. may schedule a conference to This request may occur, for example, when a taxpayer wants a conference of right but be held by telephone believes that the issue does not warrant the expense of traveling to Washington, DC. If a taxpayer makes such a request, the branch chief, or his or her delegate of the branch to which the case is assigned, will decide if it is appropriate in the particular case to hold the conference of right by telephone. If the request is approved, the taxpayer will be advised when to call the Service representatives (not a toll-free call).

In accordance with section 14.02 of this revenue procedure, the EP/EO specialist or appeals officer will be offered the opportunity to participate in the telephone conference. Section 14.02 of this revenue procedure also provides that other Service representatives are allowed to participate in the conference.